Sales Tax Instructions

Sales Tax Instructions, 2009
allowed to be imported under DTRE.
are covered in the term ―Input
Goods‖ (Rule 196(1)(f)).
6. It is not clear whether purchase of
input goods from domestic supplies by
an exporter, being zero-rated, shall be
free of sales tax and entitled to input tax
credit/refund of input tax paid by him.
It is clarified that under Rule
297(8), purchases of input goods
from domestic supplier by an
exporter, being zero-rated, shall be
free of sales tax. Being zero-rated,
input tax credits/refunds are also
available.
7. Can a unit operate part of its
capacity/production under DTRE
scheme while simultaneously operating
the balance capacity/production under
the normal regime.
Yes. There is no restriction under
DTRE Rules, 2001 on availing two
or more scheme. An exporter can
avail other schemes besides DTRE
regime simultaneously, provided
separate records/accounts are
maintained for each scheme.
8. In case of two approvals can the
exporters use items of both approvals to
Yes. Such an arrangement is
admissible under DTRE Rules.
make exportable goods under any one of
the two or for the third approval.
9. Collectorates do not accept export
order or contract and resort to
Under DTRE Rules, 2001, there is
no condition of any kind of